New restaurant growth boosts Burger King fiscal 3Q results

MIAMI — Burger King Holdings Inc. said Thursday that strong same-store sales in each of its segments and new restaurant growth helped to boost profit 21 percent in its third fiscal quarter.

The Miami-based fast-food chain said net income rose to $41 million, or 30 cents per share, from $34 million, or 25 cents per share, last year. Revenue rose 10 percent to $594 million from $539 million last year.

Analysts, on average, predicted a profit of 27 cents per share on revenue of $580 million, according to Thomson Financial.

Burger King says same-store sales rose 5.8 percent during the quarter.

"This quarter we delivered on our global growth strategies, with all segments contributing to top and bottom line expansion," said John Chidsey, chief executive officer. "We leveraged our product pipeline and marketing initiatives around the world while creating a consistent and positive guest experience at our restaurants."

Chidsey credited the growth with a new Whopper advertising campaign in the U.S., as well as new chicken sandwiches and Snoopy and SpongeBob SquarePants promotions. In the rest of the world new products and standardizing some menus also helped.

For the first nine months of the year, net income was $139 million, or $1.01 a share, compared with $112 million, or 82 cents a share, last year. Revenues were $1.81 billion compared with $1.64 billion.

Burger King now expects a profit of $1.33 to $1.35 per share for the year, up from previous guidance of $1.28 per share. Analysts predict earnings of $1.32 per share.

In the quarter, Burger King continued its global expansion, including the opening of the first restaurant in Colombia and three franchised airport locations in China.

"Our high visibility restaurant in the Beijing airport will expose millions of passengers to our brand this summer in connection with the 2008 Olympics," Chidsey said. "Gateway airport locations throughout the Asia Pacific region are projecting our brand presence worldwide."

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